IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i4p1867-d496104.html
   My bibliography  Save this article

Economic Complexity and Human Development: Moderated by Logistics and International Migration

Author

Listed:
  • Emilie Sophie Le Caous

    (College of Business, Southern Taiwan University of Science and Technology (STUST), No.1, Nantai Street, Yongkang District, Tainan 71005, Taiwan)

  • Fenghueih Huarng

    (Department of Business Administration, Southern Taiwan University of Science and Technology, No.1, Nantai Street, Yongkang District, Tainan 71005, Taiwan)

Abstract

Living in a world where we can expand our economic wealth and the richness of human life is the core of the human development concept. Greater well-being for all can be achieved by improving people’s capabilities and more importantly, by giving individuals the ability to use their knowledge and skills. The economic complexity index (i.e., ECI) is a new indicator that defines a country’s complexity. Through a vast network, citizens can transfer an enormous quantity of relevant knowledge, leading to the creation of diversified and complex products. However, the relationship between economic complexity and human development is not that simple. Thus, this paper aimed to understand it deeper—international migration and logistics performance are used as moderators. Hierarchical linear modeling was the statistical tool used to analyze two groups of countries from 1990 to 2017. For robustness and to deal with possible endogeneity issues, different year lags were also included. The results show that international migration and logistics performance are decisive moderators as they change the relationship between economic complexity and human development.

Suggested Citation

  • Emilie Sophie Le Caous & Fenghueih Huarng, 2021. "Economic Complexity and Human Development: Moderated by Logistics and International Migration," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:1867-:d:496104
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/4/1867/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/4/1867/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luisa Mart𓐊Author-X-Name-First: Luisa & Leandro Garc𨀍, 2014. "The importance of the Logistics Performance Index in international trade," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2982-2992, August.
    2. Shepherd, Ben & Pasadilla, Gloria, 2011. "Trade in Services and Human Development: A First Look at the Links," ADBI Working Papers 268, Asian Development Bank Institute.
    3. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    4. Sudhir Anand and Amartya Sen, 1995. "Gender Inequality in Human Development: Theories and Measurement," Human Development Occasional Papers (1992-2007) HDOCPA-1995-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    5. Saleh Albeaik & Mary Kaltenberg & Mansour Alsaleh & Cesar A. Hidalgo, 2017. "Improving the Economic Complexity Index," Papers 1707.05826, arXiv.org, revised Jul 2017.
    6. Matthieu Cristelli & Andrea Gabrielli & Andrea Tacchella & Guido Caldarelli & Luciano Pietronero, 2013. "Measuring the Intangibles: A Metrics for the Economic Complexity of Countries and Products," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-20, August.
    7. Magnus Lofstrom & Chunbei Wang, 2019. "Immigrants and entrepreneurship," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-85, June.
    8. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    9. Shanker Satyanath & Nico Voigtländer & Hans-Joachim Voth, 2017. "Bowling for Fascism: Social Capital and the Rise of the Nazi Party," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 478-526.
    10. World Bank Group, 2017. "World Development Report 2017 [Rapport sur le développement dans le monde 2017]," World Bank Publications - Books, The World Bank Group, number 25880.
    11. Hausmann, Ricardo & Hidalgo, Cesar, 2014. "The Atlas of Economic Complexity: Mapping Paths to Prosperity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262525429, April.
    12. Robert E.B. Lucas, 2005. "International Migration and Economic Development," Books, Edward Elgar Publishing, number 3826.
    13. Athanasios Lapatinas, 2016. "Economic complexity and human development: a note," Economics Bulletin, AccessEcon, vol. 36(3), pages 1441-1452.
    14. Manuel Sebastian Mariani & Alexandre Vidmer & Matus Medo & Yi-Cheng Zhang, 2015. "Measuring economic complexity of countries and products: which metric to use?," Papers 1509.01482, arXiv.org.
    15. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    16. Zoran Utkovski & Melanie F Pradier & Viktor Stojkoski & Fernando Perez-Cruz & Ljupco Kocarev, 2018. "Economic complexity unfolded: Interpretable model for the productive structure of economies," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-24, August.
    17. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, vol. 12(5), pages 1-26, March.
    18. Sudhir Anand & Amartya Sen, 2000. "The Income Component of the Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 83-106.
    19. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    20. Sudhir Anand and Amartya Sen, 2000. "The Income Component of Human Development Index," Human Development Occasional Papers (1992-2007) HDOCPA-2000-01, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    21. Farber, Daniel A, 2002. "Rights as Signals," The Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages 83-98, January.
    22. Ronald Skeldon, 2008. "International Migration as a Tool in Development Policy: A Passing Phase?," Population and Development Review, The Population Council, Inc., vol. 34(1), pages 1-18, March.
    23. Amie Gaye & Jeni Klugman & Milorad Kovacevic & Sarah Twigg & Eduardo Zambrano, 2010. "Measuring Key Disparities in Human Development: The Gender Inequality Index," Human Development Research Papers (2009 to present) HDRP-2010-46, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    24. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
    25. Manuel Mariani & Alexandre Vidmer & Matsúš Medo & Yi-Cheng Zhang, 2015. "Measuring economic complexity of countries and products: which metric to use?," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 88(11), pages 1-9, November.
    26. Dasgupta, Partha & Weale, Martin, 1992. "On measuring the quality of life," World Development, Elsevier, vol. 20(1), pages 119-131, January.
    27. Ferraz, Diogo & Silveira, Naijela J. C. & Herick Fernando Moralles & do Nascimento Rebelatto, Daisy Aparecida & Pyka, Andreas, 2017. "An Efficiency Analysis Of Economic Complexity And Human Development In 2013," EconStor Conference Papers 171455, ZBW - Leibniz Information Centre for Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali, Shahid & Xiaohong, Zhou & Hassan, Syed Tauseef, 2024. "The hidden drivers of human development: Assessing its role in shaping BRICS-T's economics complexity, and bioenergy transition," Renewable Energy, Elsevier, vol. 221(C).
    2. María Guadalupe Montiel-Hernández & Carla Carolina Pérez-Hernández & Blanca Cecilia Salazar-Hernández, 2024. "The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research," Sustainability, MDPI, vol. 16(1), pages 1-26, January.
    3. Manuel Gómez‐Zaldívar & María Isabel Osorio‐Caballero & Edgar Juan Saucedo‐Acosta, 2022. "Income inequality and economic complexity: Evidence from Mexican states," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 344-363, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, vol. 12(5), pages 1-26, March.
    2. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    3. Chu, Lan Khanh & Hoang, Dung Phuong, 2020. "How does economic complexity influence income inequality? New evidence from international data," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 44-57.
    4. Ming-Yang Zhou & Xiao-Yu Li & Wen-Man Xiong & Hao Liao, 2018. "Quantifying the Robustness of Countries’ Competitiveness by Network-Based Methods," Complexity, Hindawi, vol. 2018, pages 1-10, December.
    5. Diogo Ferraz & Fernanda P. S. Falguera & Enzo B. Mariano & Dominik Hartmann, 2021. "Linking Economic Complexity, Diversification, and Industrial Policy with Sustainable Development: A Structured Literature Review," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    6. Viktor Stojkoski & Zoran Utkovski & Ljupco Kocarev, 2016. "The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-29, August.
    7. Canh Phuc Nguyen & Christophe Schinckus & Thanh Dinh Su, 2020. "The drivers of economic complexity: International evidence from financial development and patents," International Economics, CEPII research center, issue 164, pages 140-150.
    8. Cem Çağrı Dönmez & Abdulkadir Atalan, 2019. "Developing Statistical Optimization Models for Urban Competitiveness Index: Under the Boundaries of Econophysics Approach," Complexity, Hindawi, vol. 2019, pages 1-11, November.
    9. Jian Gao & Tao Zhou, 2017. "Quantifying China's Regional Economic Complexity," Papers 1703.01292, arXiv.org, revised Nov 2017.
    10. Hao Liao & Alexandre Vidmer, 2018. "A Comparative Analysis of the Predictive Abilities of Economic Complexity Metrics Using International Trade Network," Complexity, Hindawi, vol. 2018, pages 1-12, February.
    11. Abhijit Chakraborty & Hiroyasu Inoue & Yoshi Fujiwara, 2020. "Economic complexity of prefectures in Japan," PLOS ONE, Public Library of Science, vol. 15(8), pages 1-13, August.
    12. Gnangnon, Sèna Kimm, 2022. "Effect of the utilization of non-reciprocal trade preferences offered by the QUAD countries on beneficiary countries' economic complexity," Journal of the Japanese and International Economies, Elsevier, vol. 65(C).
    13. Zoran Utkovski & Melanie F Pradier & Viktor Stojkoski & Fernando Perez-Cruz & Ljupco Kocarev, 2018. "Economic complexity unfolded: Interpretable model for the productive structure of economies," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-24, August.
    14. Ha, Le Thanh & Dung, Hoang Phuong & Thanh, To Trung, 2021. "Economic complexity and shadow economy: A multi-dimensional analysis," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 408-422.
    15. Wu, Rui-Jie & Shi, Gui-Yuan & Zhang, Yi-Cheng & Mariani, Manuel Sebastian, 2016. "The mathematics of non-linear metrics for nested networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 460(C), pages 254-269.
    16. Leandro Prados de la Escosura, 2015. "World Human Development: 1870–2007," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 220-247, June.
    17. Antonis Adam & Antonios Garas & Marina-Selini Katsaiti & Athanasios Lapatinas, 2023. "Economic complexity and jobs: an empirical analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(1), pages 25-52, January.
    18. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    19. Hao Liao & Xiao-Min Huang & Xing-Tong Wu & Ming-Kai Liu & Alexandre Vidmer & Mingyang Zhou & Yi-Cheng Zhang, 2019. "Enhancing countries' fitness with recommender systems on the international trade network," Papers 1904.02412, arXiv.org.
    20. Orazio Angelini & Matthieu Cristelli & Andrea Zaccaria & Luciano Pietronero, 2017. "The complex dynamics of products and its asymptotic properties," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-20, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:4:p:1867-:d:496104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.